By Stanley White
TOKYO (Reuters) – Asian stocks and the pound gained on Tuesday as investors held out hope that the UK still had a chance to avoid a messy exit from the EU in key talks this week.  MSCI's broadest index of equities in Asia and the Pacific off Japan was up 0.1%. Australian equities () rose 0.17%, while Japan's Nikkei index () was up 1.86%.
Pan region Euro Stoxx 50 futures () rose 0.23%, German DAX futures () were 0.16% higher, while futures () increased by 0.1
The pound rose against the dollar and euro, reflecting the cautious optimism surrounding the UK-EU talks.
However, limiting broader stock gains was an perceived lack of progress from US-China trade negotiations.
Reports of a US-China "Phase 1" trade agreement last week had previously delighted markets, but the lack of details surrounding the deal has since dampened this enthusiasm with oil prices that boosted declines, Chinese stocks weakened and the safe harbor holds gains. against dollars.
The focus has now shifted to Europe where UK and EU officials will meet at a summit Thursday and Friday that will decide whether or not the UK is heading for such a cold d-deal Brexit.
"Given the parliamentary intervention, I would say that the chance of a Brexit without a deal is around 10% to 20%," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.
"If there is a deal, sterling would rally and the risk of assets would rally, but the reaction may be limited to one day."
US stock futures () rose 0.27% on Tuesday in Asia after the S&P 500 ended 0.14% lower.
However, traders warned that the sentiment remains fragile because the outcome of Brexit talks is far from certain and the US and Chinese trade wars are still a risk to global growth.
British Prime Minister Boris Johnson wants to conclude an exit agreement at an EU summit on Thursday and Friday to allow an orderly departure on October 31.
The main stick is the border between EU member Ireland and Northern Ireland, which belongs to the United Kingdom. Some EU politicians have expressed guarded optimism that an agreement can be reached.
However, EU diplomats have indicated that they are pessimistic about Johnson's proposed solution for the border and want more concessions.
In the foreign exchange market, sterling rose 0.17% to $ 1.2632, approaching a three-month high of $ 1.2708. The pound () also rose around 0.18% to 87.34 pence per euro.
The Yen, often considered a safe haven in times of economic uncertainty, remained stable at 108.33 versus the dollar.
China's Scorecard of War Action War https: //fingfx.thomsonreuters.com/gfx/mkt/12/7226/7157/Pasted%20Image.jpgisie19659002 ?? An experienced lack of progress in resolving a long-standing US-China trade line also weighed on investor confidence.  Chinese equities () fell 0.44% on Tuesday, led by a decline in the technology sector. In the onshore market, the yuan traded at $ 7.0740 per dollar, retreating from a two-month high reached Monday.
The United States agreed to postpone an October 15 increase in Chinese goods tariffs, while Beijing said it would buy as much as $ 50 billion US agricultural products after tense negotiations last week.
However, Washington has left tariffs on hundreds of billions of dollars of Chinese goods.
Trade experts and Chinese market analysts say the chances are high that Washington and Beijing won't agree on any specifications – which happened in May – in time for a mid-November meeting between Trump and Chinese President Xi Jinping.
US crude oil () fell 0.71% to $ 53.21 per barrel after a 2% drop over night due to concerns that global energy demand will remain weak.
Brent crude () also fell 0.78% to $ 58.89 per barrel.
At the beginning of last week, hedge funds had become the most bumpy against oil prices since the start of the year, according to an analysis of position records published by the US Commodity Futures Trading Commission and ICE (NYSE 🙂 Futures Europe.